Are first time buyers starting to rely less on the ‘Bank of Mum & Dad’?

5th March 2015

The amount of first time buyers relying on the so-called Bank of Mum and Dad to help bolster their deposit has dropped significantly according to new research.

Clydesdale and Yorkshire Banks’ Annual First Time Buyers Survey has revealed that less than half, at 46%, of the nation’s first time buyers needed help in saving for their deposit in 2014. This marks a steep drop on 63% looking for hand-outs in 2013 and more than three quarters, at 78%, in 2012.

Steve Fletcher, head of Clydesdale and Yorkshire Bank’s retail network, said: “It has been very encouraging to see the recovery of the property market with lending to first time buyers at the highest level for seven years.

“It is also positive that the number of first time buyers relying on the Bank of Mum and Dad to get on the property ladder has decreased significantly. This reflects the increased availability of first time buyer mortgages with a low deposit as well as growing economic confidence particularly among house buyers.”

The research also underlined some stark regional first time buyer differences with just over a quarter, at 27%, in Yorkshire receiving support from their parents compared to 57% in the South West.

Regional breakdown re help from Bank of Mum and Dad in saving deposit for first home: